CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Asian markets jump on Wall Street surge

Tokyo's Nikkei 225 jumped 3.54%, Australia's S&P/ASX 200 rose as much as 1.50%, and Hong Kong's Hang Seng Index was up 0.99%.

Angela Teng @AngelaTeng_IG
Financial Writer, Singapore

Publication date : 2018-12-27T02:08:00+0000

Markets board

Source: Bloomberg

Markets in Asia rallied on Thursday following Wall Street’s rebound, helped by the largest jump in oil prices in more than two years. The jump was also supported by a take up of shares that were deemed to be in oversold territory.

Tokyo’s Nikkei 225 index jumped 3.54% or 684.32 points to 20,011.38 in the first few minutes of trading on Thursday. The broader Topix index rose 3.81% or 54.55 points, to 1,486.02.

Australian shares gained sharply on Thursday, with the S&P/ASX 200 index up in the largest intra-day percentage gain in almost one month, rising as much as 1.50%.

Singapore’s Straits Times Index bounced 1.38% or 41.6 points on Thursday morning, to 3,052.75 points, while Malaysia’s FTSE Bursa Malaysia edged up 0.36% or 6.07 points, to 1,678.67.

Chinese stocks rose minutes into trading, with the Shanghai Composite Index up 1.07% or 27.84 points higher at 2,525.14, while the Hang Seng Index was up 0.99% or 253.87 points at 25,905.25.

Wall Street surge helped by oversold equities, oil price gains

Overnight, the Dow Jones Industrial Average rose nearly 1,100 points or 4.98%, to 22,878.45 points, with most of United States’ (US) major indices rising by the largest daily percentage gains in nearly a decade by the end of trading day.

The broad-based S&P 500 surged 4.96% to 2,467.70 points, while Nasdaq jumped 5.84% to 6,554.36 points.

Analysts said the strong rebound is partly due to equities being oversold recently, as investors had been jittery over the US-China tariff war, and projections of a weaker economic outlook for next year.

The close to a 9.00% jump in US oil prices – the biggest in more than two years – also contributed to the bounce in equities.

Oil-related shares saw a good session, with Equinor ASA winning 5.36% and Chevron up 6.34%, following the rally in oil prices.

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